Prognosis

Generic-Drug Labeling Strategy Likely to Survive Teva Rehearing

  • U.S. appeals court reconsiders a controversial October ruling
  • Debate focused on what generics can say about brand drugs

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A U.S. appeals court panel signaled that it wants to ensure generic-drug makers can continue selling low-cost copycat medicines with limited-use labels as long as they don’t actively promote newer uses discovered by brand-name companies.

In an unusual proceeding, a three-judge panel of the U.S. Court of Appeals for the Federal Circuit on Tuesday heard arguments for the second time over a $235 million verdict won by GlaxoSmithKline Plc over Teva Pharmaceutical Industries Ltd.’s copy of its Coreg heart drug. In October, it split 2-1 in upholding the jury verdict that found Teva’s label encouraged doctors to prescribe a generic version for a newer patented indication.